Business & Finance
Is Your Insurance Company Financially Stable
e live in a State prone to hurricanes and other natural disasters, making it critical for home insurance companies doing business in Florida, to have the financial stability to not only withstand hurricanes, but pay customer claims and continue to remain in business after the storm – after multiple storms. Why is this important? To have a high rating by A.M. Best, a company must have enough reserves and reinsurance to survive two major storms or events in a year. You need to be sure your carrier has the resources to match its coverage commitments. If you provider doesn’t have a strong rating, you may want to move on to a more stable, trustworthy provider. Do you remember pictures from disaster areas, with blue tarps on the roof months afterwards, and in paint asking, “(Blank) Insurance where are you?” In any relationship, trust is key, and your relationship with your insurer is no exception. Knowing your home insurer is financially stable is an important element of that trust. After all, you are investing your money in premiums, trusting that the insurer will be able to fulfill its financial obligation to you in the event of a claim. Are you willing to risk a major investment (Your Home) to a company that has no track record, or ratings? Given the potential risk of insurance companies failing, it is best to know the financial status of any company you’re buying insurance from. One benefit of working with an Agency like AAA, we are always keeping close tabs on the financial status of all insurance carriers our agency works with, and recommend working only with insurers that are financially stable with a rating of B++ or better with A.M. Best When you think of AAA, think of “A” Rating Often overlooked during an insurance purchase is a carrier’s financial rating. It is important to at least know what the financial rating of your insurance carrier is. AM Best is a widely used rating organization specializing in the financial and insurance sectors. The AM Best system is an easy way for you to understand the quality of an insurance carrier’s financial stability. Most carriers you are going to find at the retail level will have AM Best rating of A- or better. Occasionally you will find a carrier with a B+ or B++ rating. For the average personal home and auto purchase look for a company rated at least B+ or better.
How stable is my carrier? In addition, you can check on the financial ratings of your insurance carriers by visiting the Web sites of insurance industry rating agencies or by going directly to the Web site of each insurance carrier. Most carriers that are highly rated display their ratings prominently. Rating agencies for the insurance industry include: A.M. Best (www.ambest.com), Demotech, Inc. (www.demotech.com), Fitch (www.fitchratings.com), Moody’s Investors Services (http://www.moodys.com/), Standard & Poor’s (www.standardandpoors.com) As you are going through these different rating companies, and you are looking at your insurer’s rating. You are going to see the rating given is not the same from one rating service to the next. A.M. Best could give one insurance company “B+” rating while Demotech could be giving that company a “A” rating. One company may use their highest rating as an “A” while the other uses a “AAA”. And the “A” from the first is actually better than one with a “A++”. If you find that your present company has a rating that alarms you, consider changing insurers. Ratings also change so it is necessary to review your company at least once a year. Seeking additional advice from your personal Insurance agent would be worthwhile to your financial protection. Don’t be the one stuck with a blue tarp call AAA today!
Karalee Sievert - Licensed Life, Health, Property and Casualty Insurance Agent Karalee and her family live in Ponte Vedra, moving here in 2004 from Connecticut. First licensed in 1997 she shares a vast amount of experience, and knowledge, with her clients, and friends. She is passionate about educating everyone she meets about the laws, and coverages needed in Florida to adequately protect you, and your most valuable possessions. Her favorite saying is, “Your insurance is only as good as your agent.”
Mary Mahon - Licensed Property and Casualty Insurance Agent
Mary has over 10 years experience as an insurance agent, and started in Sedona, Arizona. She moved to Orange Park, Florida in the Spring of 2007. She has been recognized by the company, and honored as the Employee of the Month for the club and accepted into AAA’s Leadership Development Program. She is very eager to sit down with you and provide you with the most professional, friendly and comprehensive insurance learning experience you will ever have. AAA Insurance Agency is available to members and non-members alike!
AAA – The Auto Club Group
Our office in Orange Park is part of the Auto Club Group which has offices in 11 states and Puerto Rico. ACG is the second largest AAA affiliate in the world. Since it’s founding in 1902, AAA has been an advocate for motorists, safer roads and vehicles, better educated drivers and the rights of travelers. AAA is the only company in Florida to offer a true home and auto package with both covered under one policy, often times giving better coverage, as well as substantial savings.
Published on Jun 13, 2014